Current Report No. 23/2022

Date of preparation: 09 November 2022

Subject: Updating the assumptions announced in the Development Strategy of LW Bogdanka S.A. in the Mining Area of the ENEA Group until 2030 (with an outlook to 2040)

Legal basis: Article 17(1) of MAR – confidential information

Body of the report:
The Management Board of LW Bogdanka S.A. (“Company”), with its registered office in Bogdanka, hereby reports that on 9 November 2022, it decided to update the assumptions of the “Development Strategy of LW Bogdanka S.A. ENEA Group Mining Area until 2030 (perspective until 2040)” (“Strategy”), regarding production plans for the coming years. Due to a significant change in the domestic and international market situation in 2022, the Company decided to revise its basic assumptions.

One of the basic assumptions of the current Strategy, the adoption of which the Company reported in Current Report No. 37/2020 dated 16 December 2020, was to increase the number of products through selective mining of coal (Type 34). Due to the results of the completed tests, indicating a small amount of type 34 coal in the samples tested, as well as increased demand for steam coal, the Company has decided to deviate from the aforementioned assumption in order to maximize the production of its core product. The abandonment of selective coal mining in the deposit will allow the Company to increase its potential production capacity after 2026 by approx. 10% compared to the average volumes presented in the current Strategy.

At the same time, the Company reports that it is working on a comprehensive update of its Strategy, as part of which other elements of the Strategy, such as the resource base, development plans, as well as strategic initiatives including seeking investment opportunities outside the core business, may also be revised.